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Cineplex Entertainment

In: Business and Management

Submitted By fahdabbasi
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Pages 6
CUSTOMER RELATIONSHIP MANAGEMENT
ASSIGNMENT
CINEPLEX ENTERTAINMENT: THE LOYALTY PROGRAM

SUBMITTED BY:
FAHD AHMAD ABBASI
(2010-NUST-EMBA-17)

NUST BUSINESS SCHOOL
NATIONAL UNIVERSITY OF SCIENCES AND TECHNOLOGY
Date: 27th November, 2011

INTRODUCTION

Based on the “Cineplex Entertainment : The Loyalty Program” Case Study the following question needed to be answered: Question No. 03: What is the likely increase in Cineplex Entertainment Revenue from your proposed Incentive Program @ 0%, 5%, 10%, 15% or 20%. What would be the varying Financial Consequences for Complex? Would you proceed with the reward program?
Based on the Information in the Case Study an Incremental Analysis for expected Revenues and Expenses is done which intern provides the expected profits of different Options of Loyalty Programs being considered.
The Incentive Program chosen for analyzing the case is “Internal Development”.

ANALYSIS

The given information regarding the Attendance and Revenues is as follows: Revenues | Year | 2006 | 2005 | 2004 | Box Office Revenue | - | 308,673,000 | 209,440,000 | Concessions Revenue | - | 137,323,000 | 85,423,000 | Other Revenue | - | 44,303,000 | 20,923,000 | Attendance | 61,000,000 | 39,945,000 | 28,096,000 | Total Revenue | - | 530,244,000 | 343,882,000 | Box Office Revenue per Patron | - | 7.73 | 7.45 | Concessions Revenue per Patron | - | 3.44 | 3.04 |

Based on this information The Incremental Attendance is Calculated and then Cannibalization Rate is incorporated to find out the Incremental Attendance with the Cannibalization Rate of 12.5, 25 and 50% respectively.

Attendance | Year | | 2006 (E) | 2005 | Attendance | | 61,000,000 | 39,945,000 | Incremental Attendance | | 21,055,000 | | Attendance with Cannibalization Rate | Cannibalization Rate | Incremental Attendance...

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